Summary
The applicant, a 45-year-old defense contractor with a history of financial difficulties, faced security clearance denial under Guidelines E and F due to numerous unresolved debts totaling over $100,000. Despite citing personal hardships such as unemployment and divorce, the applicant failed to provide evidence of debt resolution or responsible financial management, leading to a conclusion that he posed a risk to national security.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The SOR alleges that facts upon which 1.v. is based show conduct which shows questionable judgement, lack of candor, dishonesty, or unwillingness to comply with rules and regulations under Guideline E (2.a). This overdue debt is cited in the SOR in the amount of $339. Applicant admitted this debt in his RSOR. No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding (1.a). This overdue debt is cited in the SOR in the amount of $319. Applicant admitted this debt in his RSOR. No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding (1.b). This overdue debt is cited in the SOR in the amount of $653. Applicant wrote that he “did not recall” this debt in his RSOR. The credit report shows that this medical debt is overdue by Applicant. No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding (1.c). This overdue debt is cited in the SOR in the amount of $164. Applicant admitted this debt in his RSOR. No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding (1.d). This overdue debt is cited in the SOR in the amount of $67. Applicant wrote that he “did not recall” this debt in his RSOR. The credit report shows that this debt is overdue by Applicant. No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding (1.e). This overdue debt is cited in the SOR in the amount of $30. Applicant wrote that he “did not recall” this debt in his RSOR. The credit report shows that this medical debt is overdue by Applicant. No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding (1.f). This overdue debt is cited in the SOR in the amount of $1,971. Applicant denied this debt in his RSOR. The credit report shows that this debt is overdue by Applicant. No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding (1.g). This overdue debt is cited in the SOR in the amount of $303. Applicant admitted this debt in his RSOR. No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding (1.h). This overdue debt is cited in the SOR in the amount of $514. Applicant wrote that he “did not recall” this debt in his RSOR. The credit report shows that this debt is overdue by Applicant. No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding (1.i). This overdue debt is cited in the SOR in the amount of $679. Applicant denied this debt in his RSOR. This debt has been shown to be overdue by Applicant. No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding (1.j). This overdue debt is cited in the SOR in the amount of $56,284 for a student loan. Applicant admitted this debt in his RSOR, but he wrote that the “amount may be different due to recent payment schedule.” No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding (1.k). This overdue debt is cited in the SOR in the amount of $34,848 for a student loan. Applicant admitted this debt in his RSOR, but he wrote that the “amount may be different due to recent payment schedule.” No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding (1.l). This overdue debt is cited in the SOR in the amount of $210. Applicant admitted this debt in his RSOR. No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding (1.m). This overdue debt is cited in the SOR in the amount of $1,025 for a judgment filed against him in 2003. Applicant denied this debt in his RSOR. The credit report shows that this debt for a judgment is overdue. No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding (1.n). This overdue debt is cited in the SOR in the amount of $2,433 for a judgment filed against him in 2003. Applicant wrote that he “did not recall” this debt in his RSOR. The credit report shows that this debt for a judgment is overdue. No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding (1.o). This overdue debt is cited in the SOR in the amount of $275. Applicant admitted this debt in his RSOR. No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding (1.p). This overdue debt is cited in the SOR in the amount of $4,125. Applicant admitted this debt in his RSOR. No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding (1.q). This overdue debt is cited in the SOR in the amount of $49. Applicant wrote that he “did not recall” this debt in his RSOR. The credit report shows that this debt is overdue by Applicant. No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding (1.r). This overdue debt is cited in the SOR in the amount of $191. Applicant wrote that he “Never had a utility account in PA” in his RSOR. The credit report shows that this debt is overdue by Applicant. No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding (1.s). This overdue debt is cited in the SOR in the amount of $117. Applicant wrote that he “did not recall” this debt in his RSOR. The credit report shows that this debt is overdue by Applicant. No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding (1.t). This overdue debt is cited in the SOR in the amount of $287. Applicant admitted this debt in his RSOR. No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding (1.u). This overdue debt is cited in the SOR in the amount of $20,676 for renter relocation and tuition reimbursement. Applicant denied this debt in his RSOR. This debt has been shown to be overdue by Applicant. No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding (1.v). This overdue debt is cited in the SOR in the amount of $12,385 for a student loan. Applicant wrote, “I recall the original amount as paid. I’ll have to look into it,” in his RSOR. The credit report shows that this debt is overdue by Applicant. No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding (1.w). This overdue debt is cited in the SOR in the amount of $8,000 for a repossessed vehicle. Applicant denied this debt in his RSOR. This debt has been shown to be overdue by Applicant. No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding (1.x). This overdue debt is cited in the SOR in the amount of $600. Applicant denied this debt in his RSOR. This debt has been shown to be overdue by Applicant. No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding (1.y).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The decision turned on the following: The applicant had 25 overdue debts totaling over $100,000, which he admitted or did not dispute; No evidence was presented to show that any debts had been resolved or that a payment plan was in place; The applicant's financial difficulties were attributed to personal circumstances, but he did not act responsibly to mitigate the situation.
Why the Applicant Was Denied
- The applicant had 25 overdue debts totaling over $100,000, which he admitted or did not dispute.
- No evidence was presented to show that any debts had been resolved or that a payment plan was in place.
- The applicant's financial difficulties were attributed to personal circumstances, but he did not act responsibly to mitigate the situation.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
Key Rule Quoted
“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”
Procedural Posture
- SOR issuedJul 19, 2011
- Answer filedAug 16, 2011Requested decision on written record.
- Hearing held—No hearing; decided on written record.
- Decision dateApr 9, 2012
Cite For
- Denial Based on Unresolved Financial Obligations Under Guideline F
- Failure to Demonstrate Responsible Financial Management
- Insufficient Evidence to Mitigate Financial Concerns Despite Personal Hardships